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The finance team of Talbot has identified the following information for the first year of the project: Projected sales $18 million Operating costs (excluding depreciation)
The finance team of Talbot has identified the following information for the first year of the project:
Projected sales | $18 million |
Operating costs (excluding depreciation) | $9 million |
Depreciation | $2 million |
Interest expense | $4 million |
The company faces a 25% tax rate. What is the cash flow for the first year?
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